Komas

John Komas appeals from a judgment which upheld a third party claim by respondent Small Business Administration (SBA) and restrained an execution sale of assets of appellant’s judgment debtor, Future Systems, Inc., a Delaware corporation.

After the sheriff had seized the debtor’s assets, Paul J. Calleja, an employee of SBA, delivered to the sheriff a verified third party claim, pursuant to section 689 of the Code of Civil Procedure, asserting a security interest in the debtor’s machinery and equipment. Attached to the verified third party claim were a “Financing Statement” which had been filed with the Secretary of State by Future Systems, Inc. and a later “Continuation Statement” filed by the United California Bank. The basis of the third party claim was a $150,000 loan from the United California Bank to Future Systems, Inc. (FSI) which had been guaranteed by the SBA: On April 28, 1972, FSI had executed a promissory note for $150,000 to United California Bank and allegedly granted a security interest in the property in question as security for that note. The note, with a balance due of $68,505.70, was subsequently assigned to the SBA.

Appellant contends that the…